Old Dominion Freight Line enters $250 million five-year senior revolver

By Marisa Wong

Los Angeles, March 23 – Old Dominion Freight Line, Inc. entered into a $250 million five-year senior unsecured revolver under a third amended and restated credit agreement dated March 22 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Of the $250 million commitments, $100 million may be used for letters of credit and 10% of the aggregate commitments may be used for swingline loans.

In addition, the company may request an increase in the aggregate commitments of up to $400 million, which may include one or more term loan commitments.

Borrowings will generally bear interest at SOFR plus 10 basis points, plus an applicable margin ranging from 100 bps to 137.5 bps, depending on the company’s consolidated debt to consolidated total capitalization ratio.

Financial covenants include a maximum consolidated debt to consolidated total capitalization ratio of 0.6 to 1.0 and a minimum fixed-charge coverage ratio of 2.0 to 1.0.

Wells Fargo Securities, LLC and BofA Securities, Inc. are the lead arrangers with Wells Fargo as bookrunner. Bank of America, NA is syndication agent.

Loan proceeds will be used for working capital, the issuance of letters of credit and general corporate purposes.

The credit agreement amends and restates the terms of the company’s existing five-year $250 million senior unsecured revolver dated Nov. 21, 2019.

Old Dominion is a less-than-truckload motor carrier based in Thomasville, N.C.

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